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Facts

  • The case involves a dispute between a husband and wife over a marital settlement agreement made during their divorce proceedings. The wife sought to set aside the agreement, claiming it was made under duress, coercion, and undue influence. Both parties initially filed for dissolution of marriage and the marital settlement agreement jointly, without legal representation. Later, both obtained attorneys, with the wife seeking to reopen the matter for an equitable division of community property and debts.

Procedural History

  • Representing themselves, Husband and Wife jointly filed a petition for dissolution of marriage and a marital settlement agreement, which was approved by the district court and incorporated into the final decree of dissolution of marriage.
  • Wife obtained an attorney and filed a motion for relief from judgment under Rule 1-060(B) NMRA and a motion for division of property pursuant to NMSA 1978, Section 40-4-20 (1993), seeking to set aside the marital settlement agreement.
  • Husband obtained counsel and responded by denying the allegations and filing a motion to dismiss based on the requirement for a separate, independent action under Section 40-4-20, followed by a motion for summary judgment.
  • The district court assigned the case to a domestic relations hearing officer, who recommended dismissing Wife’s Section 40-4-20 motion and later recommended granting Wife’s Rule 1-060(B) motion. The district court approved the dismissal of the Section 40-4-20 motion but, after a review process agreed upon by both parties, denied Wife’s Rule 1-060(B) motion.

Parties' Submissions

  • Wife: Argued the marital settlement agreement was made under duress, coercion, and undue influence and sought its annulment for an equitable division of property and debts.
  • Husband: Denied the material allegations of Wife’s motion and argued that Wife was required to file a separate, independent action under Section 40-4-20 for relief, leading to a motion for summary judgment on those grounds.

Legal Issues

  • Whether the district court complied with Rule 1-053.2 NMRA in its review and decision on the wife's objections to the recommendations of a domestic relations hearing officer.
  • Whether the wife's motion to set aside the marital settlement agreement on grounds of duress, coercion, and undue influence should be granted.
  • Whether the wife was denied due process in the handling of her motion for relief under Rule 1-060(B) NMRA.

Disposition

  • The district court's order denying the wife's motion to set aside the marital settlement agreement and her subsequent motions for reconsideration was affirmed.

Reasons

  • The Court of Appeals, per Judge Michael E. Vigil, with Judges Cynthia A. Fry and Timothy L. Garcia concurring, found that the district court had complied with Rule 1-053.2 NMRA by independently reviewing and deciding the party’s objections to the recommendations of a domestic relations hearing officer. The appellate court rejected the wife's assertions for several reasons, including her agreement to the procedure followed in the district court, which involved treating the husband's "notice of appeal" as an objection and deciding based on a review of the transcript from the evidentiary hearing before the hearing officer. The court concluded that the wife's motion for relief under Rule 1-060 was not supported by a preponderance of the evidence, and her motions were therefore denied. The court also noted that the wife did not demonstrate how she was prejudiced by the procedural issues she raised on appeal and emphasized the importance of stipulations made to simplify litigation.
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